News Article - 13 April 2007
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Some merged businesses have chosen to leave their industries or look for loopholes since a number of tax plans were laid out in the latest Budget, it has been claimed.

While the government sought to combat tax evasion by identifying businesses through their off-the-shelf structure, accountants were made exempt from these new rules.

Because of this, some firms are naming themselves as accountants if a company member belongs to an accountancy body or has worked in the field, reports have claimed.

Anne Redston of the Chartered Institute of Taxation told Accountancy Age that the definition of accountancy services in relation to the rules may need further guidance.

"We might need further comment so people are clear on this. It will depend on what they mean by accountancy services," she said.

A spokesperson from HM Revenue & Customs said that the rules had been implemented to address the issue of companies which were trying to evade tax and national insurance contributions.

KPMG tax director John Chaplin told Accountancy magazine that the legislation marked "the end" for businesses which specialise in facilitating "tax-advantageous services to one-man limited companies, regardless of whether they are badged as accountants or not".

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